If Jimmy Choos are the new gold does that make Sex and the City‘s Carrie Bradshaw—and all the deluded prescient young women who flocked to Manhattan to emulate her— somehow a market genius?
FT: “Apparently, shoes are a safer investment these days than stocks” – so said Jimmy Choo chief executive Josh Shulman last week, surveying the rows of stacked and spindly heels arrayed before him in the brand’s Milan showroom. He was attempting to explain why the New York and Los Angeles stores had reported better-than-ever sales at the same time Congress and the Federal Reserve decided Wall Street needed a rescue package.
According to Daniel Nissanoff, who runs a luxury resale business, Portero, $800 Jimmy Choos—twice worn, with only a few scuffs on the bottom—can get as much as 80% of the original value.
So, if you bought those on Monday and wore them twice you’d be in better shape than, say, if you bought Wachovia shares that same day, only to watch them go down 40%.
However…..Nissanoff said that back in 2006—sunnier days. We just checked out his site, Portero, and there were two pairs of Jimmy Choos on there. One, a pair of slightly worn slingbacks, was only fetching $299, less than a third of the estimated retail value. The other, a pair of boots, albeit fur lined, was doing much better, with a current bid of $485 on an estimated value of $785.
Now, say you bought shares of Wachovia on Monday. You’d be down 40%. If you owned the boots you’d already be ahead and we’re guessing you’re going to be a lot more ahead next week. Advantage, boots.
Plus, given the week that was we’re guessing that owning a pair of Jimmy Choos would have been much more fun than owning Wachovia.
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